Correlation Between 44965UAA2 and Nathans Famous

Can any of the company-specific risk be diversified away by investing in both 44965UAA2 and Nathans Famous at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining 44965UAA2 and Nathans Famous into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AER 653829 21 DEC 65 and Nathans Famous, you can compare the effects of market volatilities on 44965UAA2 and Nathans Famous and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in 44965UAA2 with a short position of Nathans Famous. Check out your portfolio center. Please also check ongoing floating volatility patterns of 44965UAA2 and Nathans Famous.

Diversification Opportunities for 44965UAA2 and Nathans Famous

0.49

Correlation Coefficient

44965UAA2  Nathans Famous

Very weak diversification

The 3 months correlation between 44965UAA2 and Nathans is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding AER 653829 21 DEC 65 and Nathans Famous in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nathans Famous and 44965UAA2 is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AER 653829 21 DEC 65 are associated (or correlated) with Nathans Famous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nathans Famous has no effect on the direction of 44965UAA2 i.e., 44965UAA2 and Nathans Famous go up and down completely randomly.

Pair Corralation between 44965UAA2 and Nathans Famous

Assuming the 90 days trading horizon AER 653829 21 DEC 65 is expected to under-perform the Nathans Famous. But the bond apears to be less risky and, when comparing its historical volatility, AER 653829 21 DEC 65 is 1.04 times less risky than Nathans Famous. The bond trades about -0.16 of its potential returns per unit of risk. The Nathans Famous is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  7,955  in Nathans Famous on December 25, 2024 and sell it today you would earn a total of  1,309  from holding Nathans Famous or generate 16.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	45.0%
Values	Daily Returns

AER 653829 21 DEC 65  vs.  Nathans Famous

AER 653829 21

Risk-Adjusted Performance

Very Weak

Over the last 90 days AER 653829 21 DEC 65 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for AER 653829 21 DEC 65 investors.

Nathans Famous

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nathans Famous are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Nathans Famous demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 44965UAA2 and Nathans Famous

The main advantage of trading using opposite 44965UAA2 and Nathans Famous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 44965UAA2 position performs unexpectedly, Nathans Famous can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nathans Famous will offset losses from the drop in Nathans Famous' long position.

The idea behind AER 653829 21 DEC 65 and Nathans Famous pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.